US dollar index sinks to 3-year low amid tariff crisis, gold hits record high

ISTANBUL

The US dollar index dove to a 3-year low figure of 99.014 on Friday as US President Donald Trump's aggressive trade policies strengthened recession concerns in the country.

The US dollar index fell 1.36% to currently stand at 99.49 as of 1336GMT.

The index also declined by more than 8% since the beginning of the year.

The dollar index, which is used to measure the value of the US dollar against the euro, Swiss franc, Japanese yen, Canadian dollar, British pound and Swedish krona, fell sharply as Trump's tariffs and escalating tensions with China increased economic uncertainties.

The depreciation in the dollar indicates that investors responded to Trump's protectionist policies by selling dollar assets, causing downward pressure on the dollar index.

Growing concerns about the economic recession are also causing the dollar to depreciate against other currencies.

Despite Trump's announcement that he paused additional tariffs for 90 days for other trading partners except China, other major import duties caused significant damage and the US economy may not be able to easily recover from these consequences.

The decline in confidence in the US economy and fears of a recession also triggered the selling pressure on the US dollar.

Meanwhile, the EUR/USD saw its highest level since February 2022 at $1.1474.

The ounce price of gold also rose by more than 2% to a record high of $3,244.23 on Friday as demand for the dollar fell.